By Greg Holden
The US dollar’s decline against most other major currencies yesterday appears to have skipped the Pacific country of New Zealand. The NZD/USD, as will be shown below, actually underwent a bearish session, with many indicators signaling a continuation of this downtrend.
Looking at the chart below, we can see that the pair spiked upward as 2010 came to a close, but has actually reversed course over the past few days.
The Stochastic (slow) reveals a bearish cross taking place just before the end of the year, followed by a now descending price movement. This suggests added momentum to the newly formed downward direction of the pair.
The Williams Percent Range and Relative Strength Index (RSI) both show similar price behavior. Both of these indicators were floating in the over-bought region and have since begun to move downward, suggesting bearish pressure. In the case of the RSI, the price appears to still be over-bought, which highlights the bearish notion further.
It appears this pair has entered a downturn which may last throughout the remainder of the week with a short-term target near 0.7650 and a longer-term target of 0.7500. Traders have a chance to capture these movements for profit with short positions in their Forex Trading Account.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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